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Miguel da Fonseca's avatar

Being paid 4% to hold cash when Core inflation is at 6% isn't all that. Even if it was 2%, you can often make 2% on a single day trade. That's one day vs one year. I know it's not exactly a fair comparison, but it's not that unrealistic either.

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LongS_Investor's avatar

Thanks for the insights!

Why do you think ES/NQ leads the 10Y? Seems they are correlated, but not certain there is a lead/lag relationship.

Also, that ratio picks up a bit of market beta, which is also (inversely) correlated with rates. Beta-neutral ES/NQ still correlates nicely with moves in rates, though.

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